Diligence 4.2
Origination Engine
The part of a roll-up that is easy to promise and hard to build.
Cedarline Capital · Fund I
The FunnelOrigination · 02
Proprietary pipeline · trailing twelve months

From 1,400 mapped names to four under exclusivity.

1,400Mapped, qualified businesses
210In active dialogue
46Management meetings
11Letters of intent
4Under exclusivity
Map refreshed quarterlyCedarline Capital · Funnel
Three ChannelsOrigination · 03
Direct to owner, not broker auctions

Where the deals actually come from.

Channel ADirect owner relationshipsReferrals and repeat contact with owners across target metros, built over years in the trades. The map is worked directly, quarter after quarter.
Channel BAdvisers & associationsRegional M&A advisers and trade associations who see local deals long before a national banker runs a process.
Channel CPlatform-referred bolt-onsOnce a platform is owned, its managers point to the local competitors worth buying. The best bolt-on pipeline is inside the business.
~85% of closed deals proprietary or limitedCedarline Capital · Channels
Current PipelineOrigination · 04
As at the sample date

Concrete, not theoretical.

Under LOIPlatform 1 · Southeast HVAC$6M EBITDA anchor. Number-one local position, strong replacement mix.$32M EV at 5.3x
3 × Under LOIBolt-ons to Platform 1Adjacent metros, folding onto the platform's systems within 100 days.3.8–4.2x EBITDA
ExclusivityPlatform 2 · Texas plumbingSecond control platform, diligence underway. Diversifies trade and geography.~5.5x EBITDA
Fictional pipeline for illustrationCedarline Capital · Pipeline
DisciplineOrigination · 05
The rule that protects the return

We would rather miss a deal than overpay for one.

A roll-up dies on entry price. Cedarline walks from any process that runs above 6.5x, keeps the funnel wide so no single deal is a must-win, and underwrites the downside before the base case. Proprietary sourcing is what makes that discipline affordable.

6.5x
Hard walk-away multiple on auctions
~85%
Closed deals proprietary or limited
1,400
Names on the map, refreshed quarterly
100-day
Integration clock on every bolt-on
Wide funnel, patient capitalCedarline Capital · Discipline